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ken_in_dfw

May 3, 2010, 9:20 PM

Post #1 of 10 (6965 views)

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Changes to FM2 investors visa?

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For a lot of reasons, I'm increasingly thinking that the fastest and best path to an escape from corporate USA and on to a Life Well Lived® might be an investment route. Of course, just as I was starting to get a handle on the FM2 investors class requirements, along comes a change in the rules! Just my luck.

So I thought I would poll the collective wisdom of the MexConnect board to see if anyone has any ideas on how the new immigration changes will affect someone who wants to come to México to invest.

Under the old rules, at least according to this article, you needed to pony up 25,000 times the daily wage in México D.F. That works out to about $117,000 USD under this formula: 57.46 MXN (México D.F. min. wage) x 25,000 / 12.25 (MXN=USD as of 05.03.10) = $117,265 USD. Of course, there are also the small matters of proving you know something about the business you're starting/investing in and two copies of a letter on your new business' letterhead stating what your business will be doing. Thus far, I haven't seen any minimum requirements on a number of jobs you have to create for the local population.

So my question is: have I got it right? Are these still the requirements or has any of this changed?

I'd also really appreciate any insight from someone who has gone through this as to how hard it is to get this type of visa. If you meet the requirements, can you get an FM2 investors visa fairly easily, or does it require a little more finesse and/or luck? I would think México would be encouraging investors - but México being México, you never know.

Thanks all for whatever insights you can share. Hasta la vista.

(This post was edited by ken_in_dfw on May 3, 2010, 9:35 PM)

gpkgto

May 4, 2010, 10:32 AM

Post #2 of 10 (6904 views)

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Re: [ken_in_dfw] Changes to FM2 investors visa?

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You should talk to a notario--or more specifically, one who deals with international investments. The notario will get the visa for you and help with incorporating or whatever else you might need to make the rerquired investment (I assume you are talking of establishing some kind of business?).

ken_in_dfw

May 4, 2010, 11:13 AM

Post #3 of 10 (6891 views)

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Re: [gpkgto] Changes to FM2 investors visa?

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Hmmm - not sure what happened there. I had a response that went something like below. I've noticed some strange issues with IE 7.0 (like having to force a refresh to get the latest updates on a thread). So maybe it's my wonky work laptop that's the problem. Whatever. Todos discúlpame, por favor.

Original response: Aaah, of course. I shoulda known better.

I have done some reading in other places that tells me this topic is not straight-forward and the answers depend mightily upon my specific situation. Guess I'll just have to start locating a good notario that specializes in foreign investor services.

Thanks anyway for the help. Oh, and yes, definitely starting up a new business, with employees and all. So I already knew I would need legal services. Good to know that maybe the right notario can help both with the visa and with the setup of the business.

(This post was edited by ken_in_dfw on May 4, 2010, 2:47 PM)

mazbook1

May 4, 2010, 11:18 PM

Post #4 of 10 (6837 views)

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Re: [ken_in_dfw] Changes to FM2 investors visa?

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Ken,

You really don't need an attorney or a notario UNLESS you are planning on incorporating your new business, and I can give you a number of reasons NOT to incorporate if it's just going to be a one owner corporation.

What you MUST have is a good, accountant (L.C.P.-similar to a CPA in the U.S. but much more closely dialed into the Mexican tax and employment situation than all but a very few U.S. CPAs are to the same things in the U.S.) who is experienced in setting up a foreigner-owned business. Generally, the L.C.P. who does this will know every single hoop you need to jump through from getting the proper FM status to getting a tax number from Hacienda, the Mexican tax folks, to getting employees properly enrolled (and disenrolled if necessary) with IMSS, the Mexican Social Security (and much, much more) folks. Even if you have some good reason to incorporate (where you definitely need a notario), you STILL need a Mexican L.C.P. There is just no way around that!

Oh, one of those good reasons NOT to incorporate is that Mexican "corporations" do NOT protect the stockholders from the things that U.S. corporations do. A majority stockholder in a Mexican "corporation" is just as liable as someone operating a DBA business and with a corporation you will increase the problems with your FM status.

gpkgto

May 5, 2010, 3:20 PM

Post #5 of 10 (6770 views)

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Re: [mazbook1] Changes to FM2 investors visa?

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As a lawyer, I have to advise you that a lawyer is also necessary. Why do you keep insisting a lawyer is not needed--you are possibly causing people a lot a problems.

(This post was edited by gpkgto on May 5, 2010, 3:27 PM)

mazbook1

May 9, 2010, 6:06 PM

Post #6 of 10 (6683 views)

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Re: [gpkgto] Changes to FM2 investors visa?

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I'm just passing on the advice from MY notario and from my experience in setting up 3 businesses as a foreigner in México. At no time (following the advice of my notario) was an abogado OR notario necessary. All the complications were with INM or Hacienda and my "fixer" (recommended by my L.C.P - accountant) was able to help with the INM complications and the Hacienda complications were easily handled by my L.C.P.

Unless you can tell me of something that an attorney (abogado) is needed for in the process, I will continue to preach that only an L.C.P. with experience setting up foreign-owned businesses is what is most necessary. Naturally, as I said in my previous post, if any sort of S.A. (more-or-less the equivalent of a U.S. corporation) is desired or necessary, THEN a notario IS needed, but normally not an abogado.

gpkgto

May 10, 2010, 8:30 AM

Post #7 of 10 (6638 views)

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Re: [mazbook1] Changes to FM2 investors visa?

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This is not something to argue about--IMO a lawyer/notario and an accountant are essential. If a foreigner wants to set up and operate a business in Mexico without the advice of a lawyer--good for them. All I know is that I have seen cases at the notario's office where I work involving employee problems, debt collection problems, bankruptcy problems, government regulations problems, etc. etc.--many of which could have been avoided if the client had sought the notario's advice in advance. The notario makes a lot of money from people (and these are Mexicans) who don't think they need a lawyer.

I definitely agree that an accountant will be more involved on a regular basis after the business is in operation--and a notario/lawyer is not generally qualified to offer complete tax advice. The notario I work for sends his US clients to Deloitte for accounting services.

(This post was edited by gpkgto on May 10, 2010, 8:30 AM)

bammazmx

May 10, 2010, 3:59 PM

Post #8 of 10 (6587 views)

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Re: [gpkgto] Changes to FM2 investors visa?

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I have to agree with mazbook on this one.

I contacted two different notorios before I started a business here. Both told me that their services were not nessesary, that I only needed a good accountant. they both, like the notorio you work for, recomended Deloitte.

gpkgto

May 10, 2010, 4:30 PM

Post #9 of 10 (6580 views)

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Re: [bammazmx] Changes to FM2 investors visa?

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Deloitte in Mexico offers legal services (as well as accounting services--I don't think that is allowed in the US. With Deloitte, you get lawyers (and accountants, of course), not notarios--and as has been said, the notario is required only for incorporation of a business. For other business needs a normal lawyer will suffice. Also, notarios/lawyers in Mexico (like doctors in Mexico) do not generally offer "preventive care"--they are happy to wait until there is a problem. In the US, lawyers are encouraged to help prevent legal problems. I guess it depends on the amount of risk a person can tolerate.

jerezano

May 11, 2010, 8:47 AM

Post #10 of 10 (6523 views)

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Re: [gpkgto] Changes to FM2 investors visa?

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Hello all,

Lawyers-notarios-and cerified public accountants.

>>>Deloitte in Mexico offers legal services (as well as accounting services--I don't think that is allowed in the US. With Deloitte, you get lawyers (and accountants, of course), not notarios--and as has been said, the notario is required only for incorporation of a business. For other business needs a normal lawyer will suffice. Also, notarios/lawyers in Mexico (like doctors in Mexico) do not generally offer "preventive care"--they are happy to wait until there is a problem. In the US, lawyers are encouraged to help prevent legal problems. I guess it depends on the amount of risk a person can tolerate<<<<

First of all, I am not a lawyer, nor any of the other. I'm just a normal user.

Second, we must remember that a NOTARIO in Mexico is a qualified, practicing, licensed LAWYER who has special training in real-estate matters, and apparently from what has been said in this thread, in setting up corporations (Sociedades Anónimas). Also that a notario in Mexico is responsible for the truth of all facts stated in the documnt he/she notarizes. Not just the identity and the witnessing of the signature as here in the United States.

Third, that all lawyers, including notarios act in benefit of their clients. Notarios, just as all other lawyers, may be employed on retainer. Therefore, if the client wishes to employ a notario or other lawyer to assist in preventing possible future legal problems, he/she will be happy to assist.

Now, let's get back to the original posters query. Which as I recall is about the finacial requirements for setting up a business under existing regulations as they may have been changed by new immigration regulations. Does anybody have any information which can help him, other than the advice that he needs a CPA and a notario? Which undoutedly is very good and necessary advice.

Hasta luego. Jerezano.